This is the first time that Indian oil and gas companies have been given a stake in the development of Abu Dhabi’s hydrocarbon resources. Effective from 9 March 2018 the agreement has a term of 40 years,

“We are hopeful that this historic agreement will lead to further opportunities for Indian oil and gas companies to participate in the UAE’s energy sector,” ONGC chairman Shashi Shanker had said on 11 February.

The Indian consortium will gain access to two million tonnes of annual share from the field which produces about 400,000 barrels of oil a day.

Indian energy companies are forming consortiums to pursue acquisitions in international oil and gas fields. India imports nearly 80% of its crude oil.

Oil India Ltd and ONGC account for 70% of the total oil produced in India, while the remaining 30% comes from private sector and joint venture companies.

Abu Dhabi National Oil Company (ADNOC) will also fill up India’s 1.5 million tonnes strategic petroleum reserve in Mangalore, beginning May.